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Tokenization in Private Equity: Broadening Markets with Sologenic
December 21, 2023
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The tokenization of private equity marks a profound shift in investment and blockchain technology. These tokens digitally represent ownership in private equity investments, utilizing decentralized ledgers. They facilitate fractional ownership, enhance liquidity, and streamline the management of private assets, effectively democratizing an asset class once known for its illiquidity and opacity.

Liquidity Democratized

Recent research underscores the growing interest in tokenizing private equity and hedge fund assets. A survey of fund managers across several European countries, responsible for managing approximately $546.5 billion in assets, found that 73% see private equity assets as the most likely to undergo significant tokenization. This trend is supported by estimates from the World Economic Forum, which predicts that up to 10% of global GDP could be stored and transacted via distributed ledger technology by 2027.

The financial benefits of private equity tokens are plenty, particularly in terms of liquidity. Tokenization enables these assets to trade on secondary markets, providing a more liquid alternative compared to traditional private equity investments. This gives investors the ability to enter and exit positions more easily and unlocks additional value in terms of usability and ease. Additionally, the inherent transparency provided by blockchain technology enhances trust and reduces risks associated with fraud and mismanagement.

Tokenization in OTC Markets

Over-the-counter (OTC) markets present another area where tokenization is making a significant impact. Traditionally known for trading unlisted securities that do not meet the requirements of stock exchanges, are often perceived as less transparent, opaque and exclusive markets.

The incorporation of blockchain technology in these markets is expected to enhance transparency, reduce transaction costs, and improve the efficiency of trade settlements. This technology will open up these markets to a wider audience, allowing for easier and more secure trading of a variety of assets, including those in private equity.

By establishing transaction records, capitalization tables, and smart contracts directly on the blockchain, trading in securities, including those in private equity, can be executed with unprecedented precision and minimal bureaucratic overhead.

Many of the processes involved in the trade and settlement of securities can be streamlined, notably reducing the need for intermediaries and thereby cutting transaction costs. A key aspect of this streamlining is the use of blockchain technology for escrow in OTC trades. Specifically, the XRP Ledger offers a robust mechanism for this purpose through its Trustlines feature. Trustlines on the XRPL enable the creation of secure and efficient escrow arrangements for trades. They facilitate the holding of assets until specific conditions are met, ensuring that all parties meet their obligations before the transaction is finalized.

This functionality not only enhances the security of trades by reducing counterparty risk but also significantly speeds up the settlement process. In traditional systems, escrow arrangements often involve several layers of verification and third-party involvement, which can be time-consuming and costly. The XRPL’s Trustline system, by contrast, automates and enforces these agreements directly on the blockchain, offering a more streamlined and cost-effective solution.

This advancement in escrow processing is particularly impactful in OTC markets, where the complexity and size of trades often necessitate robust escrow solutions. The ability to execute these essential components on the blockchain represents a major leap forward in making OTC trading more accessible, efficient, and secure.

Private Equity Tokenization Today

A few notable examples demonstrate the diversity and potential impact of these efforts:

Taurus and Teylor Partnership for Tokenizing SME Loans in Germany: Deutsche Bank-backed Taurus has partnered with Teylor, a fintech company, to tokenize small and medium enterprise (SME) loans in Germany. This collaboration aims to revolutionize the way SME loans are financed and traded. By tokenizing these loans, Taurus and Teylor are making it possible to trade these debt instruments on a blockchain platform, providing a new level of accessibility and liquidity to an otherwise traditional and less liquid asset class.

UK Publishes Regulations for Digital Securities Sandbox: The digital securities sandbox represents a significant step in the UK’s approach to integrating blockchain technology within its financial markets. Offering a controlled setting for testing, allows firms to explore the tokenization of assets, including private equity, without the full weight of regulatory compliance that would typically apply. This sandbox environment is crucial for identifying potential risks, understanding the impact of these technologies, and developing appropriate regulatory responses.

Republic’s Tokenized Venture Capital Funds: Republic, a platform known for democratizing investment opportunities, is set to make a significant mark in the field of private equity tokenization. The initiative involves creating digital tokens, $NOTE, that represent shares in a venture fund, making them available for trading on a digital securities platform. The tokenization of this fund is a pivotal step towards making venture capital investments more accessible to a wider range of investors.

Sologenic’s Tokenization Solutions for Private Equity

Sologenic’s role in the field of asset tokenization, particularly in private equity, aligns well with the growing trend of leveraging blockchain technology to transform traditional investment modelsSologenic, a sophisticated ecosystem built on the XRP Ledger, provides an innovative platform for the tokenization of a wide range of assets, including private equity.

  • Tokenization Capabilities of Sologenic: Sologenic’s ecosystem includes the ability to tokenize non-blockchain assets such as stocks, ETFs, commodities, and potentially private equity. This process involves converting these assets into digital tokens on the blockchain, enabling them to be traded on over 30 global stock exchanges against cryptocurrencies​
  • Controlled Transparency: The whitelisting feature on Smart Tokens within Coreum adds a layer of security and regulatory compliance. It enables the platform to effectively manage and control access to tokenized assets, ensuring that only verified and authorized participants can engage in transactions. This feature is crucial, especially in adhering to various regulatory requirements like Know Your Customer (KYC) and Anti-Money Laundering (AML) standards.
  • Regulatory and Technological Framework: As with the broader tokenized asset market, Sologenic’s platform operates within a rapidly evolving regulatory and technological landscape. Ensuring compliance with securities laws and navigating the complexities of blockchain technology is essential for the successful implementation of private equity tokenization.

“I’m observing a rapidly growing trend in the tokenization of private equity, and it’s evident that private equity fund managers are increasingly recognizing the need for enhanced liquidity, fractional ownership opportunities, and streamlined access to a broader pool of investors. Tokenization presents a transformative solution to address these crucial requirements, paving the way for a more dynamic and accessible private equity landscape.” — Michael McCaffrey, Business Development at Sologenic

Sologenic’s tokenization solutions, when applied to private equity, could significantly contribute to reshaping the investment landscape. With its robust technology and versatile platform, Sologenic is well-positioned to be a key player; aligning with global trends towards more accessible, transparent, and liquid investment opportunities. As the trend of tokenization continues to mature, Sologenic’s role in this field could become increasingly pivotal, leading to broader adoption and innovation in the RWA sector.

About Sologenic

Sologenic’s regulated arm is deploying a platform with a hybrid model for the on-demand tokenization of assets. This platform facilitates trading between crypto and off-chain traditional assets such as stocks & ETFs. The institutional-grade offering is designed for RIA’s, brokerage houses, family offices, banks and other financial institutions looking to tokenize real-world assets for their clients. Learn more at www.sologenic.com

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Brad Garlinghouse In Washington 🚀

It’s time for a fair and open level playing field.

Under Gary Gensler it was quite the opposite.

  • Brad Garlinghouse
    July 9, 2025
00:01:56
More Of The Same...l

🚨 JUST IN: Patriot Tom Fitton, who has been fighting DOJ and FBI to release documents for years, has practically thrown in the towel.

👉 "The justice department and the FBI are irredeemably compromised and corrupted.
The leadership needs to understand that and act accordingly." ~Tom Fitton

00:01:30
Christine Lagarde just gave Ripple & Circle A Shoutout!
00:00:44
👉 Coinbase just launched an AI agent for Crypto Trading

Custom AI assistants that print money in your sleep? 🔜

The future of Crypto x AI is about to go crazy.

👉 Here’s what you need to know:

💠 'Based Agent' enables creation of custom AI agents
💠 Users set up personalized agents in < 3 minutes
💠 Equipped w/ crypto wallet and on-chain functions
💠 Capable of completing trades, swaps, and staking
💠 Integrates with Coinbase’s SDK, OpenAI, & Replit

👉 What this means for the future of Crypto:

1. Open Access: Democratized access to advanced trading
2. Automated Txns: Complex trades + streamlined on-chain activity
3. AI Dominance: Est ~80% of crypto 👉txns done by AI agents by 2025

🚨 I personally wouldn't bet against Brian Armstrong and Jesse Pollak.

👉 Coinbase just launched an AI agent for Crypto Trading

same for: https://coinmarketcap.com/community/articles/686e68f5d405956445e039ff/

🚨 Ripple Picks BNY Mellon to Back RLUSD Stablecoin Amid Major Surge 🚨

Ripple has selected BNY Mellon, one of the world’s largest and most trusted financial institutions, to serve as the primary custodian for its RLUSD stablecoin. This decision comes as RLUSD experiences a surge in demand, highlighting growing institutional interest in Ripple’s stablecoin offering.

🔹 Institutional Partnership

🔹 BNY Mellon will safeguard the reserves backing RLUSD, ensuring transparency, security, and regulatory compliance for the stablecoin.

🔹 This partnership is designed to build trust with both institutional and retail users by leveraging BNY Mellon’s expertise in asset custody.

🔹 RLUSD’s Rapid Growth

🔹 RLUSD has seen a significant increase in adoption, reflecting confidence in Ripple’s approach to stablecoins and its commitment to compliance and transparency.

🔹 The collaboration with BNY ...

From Wall Street to Web3: Building Tomorrow’s Digital Asset Markets

COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS will meet in OPEN SESSION, HYBRID FORMAT to conduct a hearing entitled, “From Wall Street to Web3: Building Tomorrow’s Digital Asset Markets.” The witnesses will be: The Honorable Summer Mersinger, CEO, Blockchain Association; Mr. Jonathan Levin, CEO, Chainalysis; Mr. Dan Robinson, General Partner, Paradigm; Mr. Brad Garlinghouse, CEO, Ripple; The Honorable Timothy Massad, Research Fellow and Director of Digital Assets Policy Project of the Mossavar-Rahmani Center for Business and Government, Kennedy School of Government at Harvard University, former CFTC Chairman; and Mr. Richard Painter, S. Walter Richey Professor of Corporate Law, University of Minnesota Law School, former Associate Counsel to the President and chief White House ethics lawyer.

https://www.banking.senate.gov/hearings/from-wall-street-to-web3-building-tomorrows-digital-asset-markets

‼️XRP ETF INFOGRAPHIC REVEALS AMERICAN EXPRESS UTILIZES XRP‼️

“A well-known company that uses XRP is American Express, which leverages RippleNet to enable realtime cross-border payments for corporate clients.

Through its partnership with Ripple, American Express uses XRP indirectlyvia Ripple's infrastructure to facilitate faster and more transparent transactions between the U.S. and international markets, helping businesses move money efficiently and reduce settlement times from days to seconds.”✅

OP: Smqkedqg

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Musk Turns On Starlink to Save Iranians from Regime’s Internet Crackdown

Elon Musk, the world’s richest man and a visionary behind SpaceX, has flipped the switch on Starlink, delivering internet to Iranians amid a brutal regime crackdown.

This move comes on the heels of Israeli strikes targeting Iran’s nuclear facilities, as the Islamic Republic cuts off online access.

The former Department of Government Efficiency chief activated Starlink satellite internet service for Iranians on Saturday following the Islamic Republic's decision to impose nationwide internet restrictions.

As the Jerusalem Post reports, that the Islamic Republic’s Communications Ministry announced the move, stating, "In view of the special conditions of the country, temporary restrictions have been imposed on the country’s internet."

This action followed a series of Israeli attacks on Iranian targets.

Starlink, a SpaceX-developed satellite constellation, provides high-speed internet to regions with limited connectivity, such as remote areas or conflict zones.

Elizabeth MacDonald, a Fox News contributor, highlighted its impact, noting, "Elon Musk turning on Starlink for Iran in 2022 was a game changer. Starlink connects directly to SpaceX satellites, bypassing Iran’s ground infrastructure. That means even during government-imposed shutdowns or censorship, users can still get online, and reportedly more than 100,000 inside Iran are doing that."

During the 2022 "Woman, Life, Freedom" protests, Starlink enabled Iranians to communicate and share footage globally despite network blackouts," she added.

MacDonald also mentioned ongoing tests of "direct-to-cell" capabilities, which could allow smartphone connections without a dish, potentially expanding access and supporting free expression and protest coordination.

Musk confirmed the activation, noting on Saturday, "The beams are on."

This follows the regime’s internet shutdowns, which were triggered by Israeli military actions.

Adding to the tension, Israeli Prime Minister Benjamin Netanyahu addressed the Iranian people on Friday, urging resistance against the regime.

"Israel's fight is not against the Iranian people. Our fight is against the murderous Islamic regime that oppresses and impoverishes you,” he said.

Meanwhile, Reza Pahlavi, the exiled son of Iran’s last monarch, called on military and security forces to abandon the regime, accusing Supreme Leader Ayatollah Ali Khamenei in a Persian-language social media post of forcing Iranians into an unwanted war.

Starlink has been a beacon in other crises. Beyond Iran, Musk has leveraged Starlink to assist people during natural disasters and conflicts.

In the wake of hurricanes and earthquakes, Starlink has provided critical internet access to affected communities, enabling emergency communications and coordination.

Similarly, during the Ukraine-Russia conflict, Musk activated Starlink to support Ukrainian forces and civilians, ensuring they could maintain contact and access vital information under dire circumstances.

The genius entrepreneur, is throwing a lifeline to the oppressed in Iran, and the libs can’t stand it.

Conservative talk show host Mark Levin praised Musk’s action, reposting a message stating that Starlink would "reconnect the Iranian people with the internet and put the final nail in the coffin of the Iranian regime."

"God bless you, Elon. The Starlink beams are on in Iran!" Levin wrote.

Musk, who recently stepped down from leading the DOGE in the Trump administration, has apologized to President Trump for past criticisms, including his stance on the One Big Beautiful Bill.

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GENIUS Act lets State banks conduct some business nationwide. Regulators object

The Senate passed the GENIUS Act for stablecoins last week, but significant work remains before it becomes law. The House has a different bill, the STABLE Act, with notable differences that must be reconciled. State banking regulators have raised strong objections to a provision in the GENIUS Act that would allow state banks to operate nationwide without authorization from host states or a federal regulator.

The controversial clause permits a state bank with a regulated stablecoin subsidiary to provide money transmitter and custodial services in any other state. While host states can impose consumer protection laws, they cannot require the usual authorization and oversight typically needed for out-of-state banking operations.

The Conference of State Bank Supervisors welcomed some changes in the GENIUS Act but remains adamantly opposed to this particular provision. In a statement, CSBS said:

“Critical changes must be made during House consideration of the legislation to prevent unintended consequences and further mitigate financial stability risks. CSBS remains concerned with the dramatic and unsupported expansion of the authority of uninsured banks to conduct money transmission or custody activities nationwide without the approval or oversight of host state supervisors (Sec. 16(d)).”

The National Conference of State Legislatures expressed similar concerns in early June, stating:

“We urge you to oppose Section 16(d) and support state authority to regulate financial services in a manner that reflects local conditions, priorities and risk tolerances. Preserving the dual banking system and respecting state autonomy is essential to the safety, soundness and diversity of our nation’s financial sector.”

Evolution of nationwide authorization

Section 16 addresses several issues beyond stablecoins, including preventing a recurrence of the SEC’s SAB 121, which forced crypto assets held in custody onto balance sheets. However, the nationwide authorization subsection was added after the legislation cleared the Senate Banking Committee, with two significant modifications since then.

Originally, the provision applied only to special bank charters like Wyoming’s Special Purpose Depository Institutions or Connecticut’s Innovation Banks. Examples include crypto-focused Custodia Bank and crypto exchange Kraken in Wyoming, plus traditional finance player Fnality US in Connecticut. Recently the scope was expanded to cover most state chartered banks with stablecoin subsidiaries, possibly due to concerns about competitive advantages.

Simultaneously, the clause was substantially tightened. The initial version allowed state chartered banks to provide money transmission and custody services nationwide for any type of asset, which would include cryptocurrencies. Now these activities can only be conducted by the stablecoin subsidiary, and while Section 16(d) doesn’t explicitly limit services to stablecoins, the GENIUS Act currently restricts issuers to stablecoin related activities.

However, the House STABLE Act takes a more permissive approach, allowing regulators to decide which non-stablecoin activities are permitted. If the House version prevails in reconciliation, it could result in a significant expansion of allowed nationwide banking activities beyond stablecoins.

Is it that bad?

As originally drafted, the clause seemed overly permissive.

The amended clause makes sense for stablecoin issuers. They want to have a single regulator and be able to provide the stablecoin services throughout the United States. But it also leans into the perception outside of crypto that this is just another form of regulatory arbitrage.

The controversy over Section 16(d) reflects concerns about creating a regulatory gap that allows banks to operate interstate without the oversight typically required from either federal or state authorities. As the two Congressional chambers work toward reconciliation, lawmakers must decide whether stablecoin legislation should include provisions that effectively reduce traditional banking oversight requirements.

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If you find value in my content, consider showing your support via:

💳 PayPal: 
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Dubai regulator VARA classifies RWA issuance as licensed activity
Virtual Asset Regulatory Authority (VARA) leads global regulatory framework - makes RWA issuance licensed activity in Dubai.

Real-world assets (RWAs) issuance is now licensed activity in Dubai.

~ Actual law.
~ Not a legal gray zone.
~ Not a whitepaper fantasy.

RWA issuance and listing on secondary markets is defined under binding crypto regulation.

It’s execution by Dubai.

Irina Heaver explained:

“RWA issuance is no longer theoretical. It’s now a regulatory reality.”

VARA defined:

- RWAs are classified as Asset-Referenced Virtual Assets (ARVAs)

- Secondary market trading is permitted under VARA license

- Issuers need capital, audits, and legal disclosures

- Regulated broker-dealers and exchanges can now onboard and trade them

This closes the gap that killed STOs in 2018.

No more tokenization without venues.
No more assets without liquidity.

UAE is doing what Switzerland, Singapore, and Europe still haven’t:

Creating enforceable frameworks for RWA tokenization that actually work.

Matthew White, CEO of VARA, said it perfectly:

“Tokenization will redefine global finance in 2025.”

He’s not exaggerating.

$500B+ market predicted next year.

And the UAE just gave it legal rails.

~Real estate.
~Private credit.
~Shariah-compliant products.

Everything is in play.

This is how you turn hype into infrastructure.

What Dubai is doing now is 3 years ahead of everyone else.

Founders, investors, ecosystem builders:

You want to build real-world assets onchain.

Don’t waste another year waiting for clarity.

Come to Dubai.

It’s already here.

 

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🙏 Donations Accepted 🙏

If you find value in my content, consider showing your support via:

💳 PayPal: 
1) Simply scan the QR code below 📲
2) or visit https://www.paypal.me/thedinarian

🔗 Crypto – Support via Coinbase Wallet to: [email protected]

Or Buy me a coffee: https://buymeacoffee.com/thedinarian

Your generosity keeps this mission alive, for all! Namasté 🙏 Crypto Michael ⚡  The Dinarian

 

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